When Gathering Information About an Existing Business in Order to Evaluate

question 61

Multiple Choice

When gathering information about an existing business in order to evaluate its potential,all but which of the following questions should be asked?

• A) What is the profit record?
• B) Are there liens against any equipment?
• C) Can the lease be renewed?
• D) Did the previous owner pay bills on time?

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Definitions:

Preexisting Contract

An agreement that was already in place before certain actions were taken or before a dispute arose.

Modification

The act of making changes or alterations to something, such as a document or agreement, often to improve it or make it more suitable.

Past Consideration

Refers to something given or an action that has been taken in the past, which cannot legally serve as a consideration for a present contract.

Statute of Limitations

A legal rule setting the maximum time period in which certain actions can be brought to court or certain rights enforced, after which claims are barred regardless of merit.